■Medium-term Management Plan
3. Business Portfolio - Review and future of the medium-term management plan “Enhancement 21-25”
Fujibo Holdings' main businesses (3104) are the abrasives business and the chemical industrial products business, and the lifestyle clothing business is the semi-main business. These three businesses are positioned as core businesses, and we are aiming for further business expansion and higher profitability. The idea is to develop the chemical products (resin mold) business into the “fourth pillar” as a strategic business for that purpose.
Meanwhile, in the lifestyle clothing business, selection and concentration are promoted, specialized materials etc. are narrowed down to highly profitable products, and general-purpose materials are quietly arranged and reduced while considering withdrawal.
(1) Business portfolio and status of major policy initiatives by business segment
The main strategies and measures for each business segment progressed smoothly, and generally achieved results.
(2) Investment results and plans
We are proceeding with capacity enhancement and research and development on the premise of organic growth (autonomous growth). In particular, we place the utmost importance on research and development investments to strengthen cutting-edge areas in the abrasives business, and we will implement investments within the growth investment frame (250 to 30 billion yen) of the medium-term management plan “Enhancement 21-25.” Also, since demand for some of the main products in the chemical industrial products business has remained steady, and demand expansion over the medium to long term is also expected, 1 new line will be added to the site of the Yanai Head Office Plant for the purpose of expanding contract production capacity in line with demand forecasts.
4. ROIC-focused management
Until now, the company has been working on ROIC-oriented business operations, and certain results have also been achieved. The field department has implemented major measures to improve ROIC, such as reducing raw material costs, compressing cash balances through cash management, inventory compression through flexible production adjustments, and improving equipment productivity in regular operations.
ROIC indicators were broken down (balance sheet B/S and profit and loss statement P/L factored) in order to share management that emphasizes ROIC across the company, and correlated with individual policies at the site, so that the degree of contribution to improving ROIC throughout the company can be seen at a glance. In ROIC management, progress and results of individual policies are measured in the progress and results follow-up (twice a year) of the medium-term management plan, leading to departmental performance evaluations.
(Written by FISCO Visiting Analyst Keiji Shimizu)